Two Short Practical Books

I have recently read two wonderful books that are extremely valuable for anyone concerned about saving and retirement.

The first: : "The Investment Answer" is only 56 pages yet filled with decades of investing wisdom. In the book, the authors clearly explain investment theory for the layman. This book is a labor of love. It was co-author, Gordon Murray's, dying message to investors after working on Wall St for 25 years. He wanted to give the world the benefit of his insight before dying from brain cancer. Below is a link to a NYT article profiling the authors: Daniel C. Goldie, and Gordon S. Murray.

http://www.nytimes.com/2010/11/27/your-money/27money.html?_r=1

The second book, "Can I Retire" by Mike Piper runs exactly 100 pages and deals with the nuts and bolts concerning how much one may need to have saved in order to retire, social security, IRAs, investing, and taxes during retirement. Mike Piper has written a practical guide that will benefit anyone who is concerned about effectively managing their retirement.

Both books are written for the average person with little or no financial background. They will educate and possibly help one make decisions that could benefit them in real dollars exceeding thousands per year.

Money Magazine interview with Jack Bogle

In the link below, the Vanguard founder expands on his 2 simple rules:

1.Ignore Fads

2. Stop trying to beat the market

http://money.cnn.com/2010/12/31/pf/investing/jack_bogle.moneymag/index.htm

Bogle is one of the most respected men in the investment and mutual fund industry. His books and interviews have taught me a great deal. I recommend his books and articles. He is an advocate for the average investor and he writes so that the average investor can understand and learn.

It should be all about YOU

I am often asked: What can a Financial Planner do for me?

A good financial planner should be all about YOU , and do at least the following 10 things for you:

1. Develop a good understanding of your life goals and current financial situation.
2. Understand your risk tolerances and risk sensitivity.
3. Develop a savings plan for you - how much to save per year in order to achieve your goals.
4. Develop an allocation of stocks, bonds, and cash that is right for you.
5. Analyze your life, disability, and long term care insurance needs.
6. Help you decide the best time to start taking your Social Security benefits.
7. If retired, minimize your taxes by advising on tax efficient investments and your distribution order from your taxable and tax deferred accounts - the order matters.
8. . Give you investment advice based on probabilities not possibilities. The planner should be able to give you a probability of success not “my feeling is” or “our economist feels”

9. Make you aware of any estate and estate tax issues.
10. Always act in your best interest - a good measure of this is whether the planner is a fee-only planner. Which means that the planner works for a fixed fee and does not receive commissions or fees for any products and/or advice he recommends. You can also ask if your advisor is a CFP (Certified Financial Planner). CFPs have proven themselves academically and are held to a high ethical standard.

In most cases, a good planner will save you hundreds and maybe thousands per year in unnecessary fees, taxes and insurance. In addition, you will get a piece of mind and that is priceless.